Disciplining Children Financially

One of the most neglected areas in Christian (and non-Christian) families has to be teaching children financial discipline. Even in families in which Bible study and prayer are an established way of life, finances are rarely, if ever, discussed. Is it any wonder then that so many young couples suffer because of financial mismanagement?

Self-discipline for parents
It will do no good to teach financial discipline to children until the principles are real in the parents’ lives. The adage, "Don’t do what I do, do what I say," doesn’t work. Parents must set examples for their children. Rather than prolong this report on what parents should or should not do in their finances, I will leave it there.

Where to start?
Decisions about developing financial discipline in children must be made by both husband and wife. Start with a conference on family goals. Then, have a family session where the children can input their ideas and objections. Show them your willingness to compromise without losing sight that your goal is to teach God’s financial principles.

Be sure the plan covers the following elements.

Savings
Savings should be tied to a future event or purchase, such as buying a bike or taking a summer trip. This allows the results of the savings to be seen and enjoyed.

Budget
From the earliest stage of a child’s earned income he or she should be on a budget. In a very young child, the budget may just consist of a portion given to God and the rest rationed out for a week. By adolescence, the money is divided into normal categories, such as church contribution, clothes, entertainment, and college. By the teenage years, the budget should include checking and savings accounts and the associated bookkeeping. By graduation, parents should have full confidence that their children can function in a paper money society without borrowing to exist.

Church contribution
Explain that giving is a blessing and a demonstration of surrender to God’s authority. And if it’s possible, arrange for your children to see the end use of the money they give. Try to have the church give the money to a specific family or missionary and help your children communicate with the recipient. Difficult? Yes, but the rewards last a lifetime.

Borrowing
The vast majority of people will borrow money during their adult lives. Parents can teach their children the realities of debt by allowing them to borrow according to a rigid repayment plan with interest. The purpose is to demonstrate the realities of borrowing money. Remember that if you don’t do this, eventually a creditor will. "The rich rules over the poor, and the borrower becomes the lender’s slave" (Proverbs 22:7).

Desires
Balance the discipline with love. God says that if we delight ourselves in Him, He will provide our heart’s desires. As your children delight in you (honor and obey) be willing to bless them accordingly. This will demonstrate that your discipline is truly an act of obedience to God’s Word.

Conclusion
The financial pressure placed upon young adults is impossible to resist unless they have been armed with an unshakable source of strength--God’s Word. As parents, it is our responsibility to teach our children the rules of self-discipline. "Train up a child in the way he should go, even when he is old he will not depart from it" (Proverbs 22:6).